Agent

An authorised representative of an insurance company who sells and services insurance contracts.

Aggregate Liability Limit

It is the most the policy will pay as a result of all occurrences during the policy term.

Beneficiary

The person or persons designated by the policyholder to receive the proceeds of an insurance policy upon the death of the insured. The policyholder can name both a primary and secondary beneficiary.

Bordereau

The information submitted by a cadent to a reinsurer giving details of individual risks insured under a reinsurance treaty.

Broker

A broker is someone who sells insurance products for many different insurance companies.

Casualty

Liability or loss resulting from an accident.

Claim

A request for payment under the terms of an insurance policy.

Coinsurance

Insurance held jointly by two or more insurers.

Commission

Fee paid to an agent or insurance salesperson as a percentage of the policy premium.

Covers

Covers are predefined items for policy wordings giving a summary of the information given in a certificate of insurance.

Deductible

An amount which the insured agrees to pay as his/her part of a loss.

Depreciation

A decrease in the value of an item or property due to wear, age, or other cause.

Discount

A reduction in premium based upon meeting certain criteria.

Effective Date

The date the policy starts and insurance protection begins.

Endorsement

A written amendment attached to an insurance policy to change, restrict or broaden coverage.

Expiry Date

The date when the current insurance policy expires.

General Insurance

The class of insurance which does not involve death as the main risk. It includes home, auto and many specialised commercial risks such as general accident, marine, motor, etc.

Insurance

A system of protection against loss in which a number of individuals agree to transfer risk by paying certain sums of money, called premiums. These premiums create a pool of money which guarantees that the individuals will be compensated for losses caused by events such as fire, accident, illness, or death.

Insurance Policy

The printed form which serves as the contract between an insurer and an insured.

Insurance Policy Limit

An insurance policy Limit is the most money the policy will payout in the event of a claim.

Insured Person

The party who is being insured. In life insurance, it is the person because of his or her death the insurance company would pay out a death benefit to a designated beneficiary.

Interest

The liability attaching to the insured as a result of ownership that the insurance company is insuring.

Letter of Credit (LC)

A document issued by a bank and used to pay for cargo.

Loss Ratio

The ratio of total losses paid out in claims plus adjustment expenses divided by the total earned premiums.

Open Policy

A cargo policy with no expiration date that provides automatic coverage of cargo shipments to or from an Assured in a specified trade at agreed rates, terms, and conditions.

Policy

A written document that contains the terms of the contractual agreement between an insurance company and policy owner.

Policy Type

Describes the specific coverage provided by the policy based on the type of item being insured.

Premium

The amount of money an insurance company charges in return for providing coverage.

Reinsurance

A type of insurance that one insurance company, known as the ceding company, purchases from another insurance company, the reinsurer, in order to transfer risks on insurance policies that the ceding company issued.

Reinsurer

An insurance company that accepts the risk transferred from another insurance company in a reinsurance transaction.

Renewal

The continuation of coverage under an insurance policy, beyond its original term.

Renewal

The offer the insurance company makes to the insured in respect of terms of the insurance contract(s) for the next insurance period.

Risk

It is the possibility of an adverse event.

Sum Insured

Sum insured is the sum payable at the maturity date of a life insurance contract or upon the death of the insured party.

Third-Party

A third party is any person other than you and the insurance company, involved in your claim. First Party - You (the insured) Second Party - Insurance Company Third Party - Other person(s) involved.

Treaty

A general reinsurance agreement which is obligatory between the ceding company and the reinsurer containing the contractual terms applying to the reinsurance of some class or classes of business, in contrast to a reinsurance agreement covering an individual risk.

Underwriting

It is the process of assessing and classifying the degree of risk that a proposed insured represents. Also called the selection of risks.

Wording

An Insurance document that explains, usually in legal terms, what is covered and excluded, conditions of coverage, how claims are settled, etc.